Crowdfunding websites such as Kickstarter.com have helped small busi-nesses raise millions of dollars via the Internet, and they've even gotten the at-tention of the White House. On April 5, President Barack Obama signed the Jumpstart Our Business Startups Act, which aims to create jobs by making it easier for young rnmpanies to raise money, in part by relaxing rules on companies that use crowdfunding sites. Some regulators, though, say the law may lead to losses for well-intentioned backers. "States are concerned that the fraud and scammers will come out of the closets now and start using social networking sites to rip off investors," says Jack Her-stein, president of the North American Securities Administrators Association.
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